OTTAWA: Canada Revenue Agency’s new “autofill” service allows anyone filing 2015 returns online to fill in a lot of the blanks automatically.
You will need an online CRA account and will have to use compatible tax preparation software such as TurboTax.
The service is possible because when an employer, government agency or other source such as your bank sends you a tax slip, they also send CRA a copy.
It’s stored in an online account along with your previous tax returns, credits, carryforward amounts and other tax-related data.
When you file a return, the service uses your social insurance number to automatically and securely pull in that existing information.
Local accountants are cautiously optimistic that the service will prove be good for taxpayers.
Bridgewater’s John Swain of Swain & Associates chartered accountants, says the new service is actually an expansion of CRA software used by professional tax preparers.
He said the service will probably work well for users with relatively simple returns that involve only T4 slips, pension or RRSP contribution slips. Otherwise “things may get messy,” he said.
“A lot of people will simply assume the information pulled into the auto-filled fields is correct. While this will be true in most instances, I strongly advise users to look carefully for inconsistencies in order to avoid leaving potential savings on the table,” Swain said.
Greg Leslie, a tax partner at Collins Barrow in Dartmouth, said the service will remove a lot of human error and penalties Canadians pay each year.
However, users will still have to come up with a number of items on their own, such as capital gains, business income, and rental income.
Meanwhile, users must also bear in mind that they must create an online account before they can use the service, he said.
“This can take some time, so people should do this well before their return is due.”
Last year, the CRA sent 29 million notice of assessments to Canadians.